Change to superannuation - very disappointing
We desperately need a Government with the courage to make decisions that are in the nation’s best long term interest.
Sadly, for a decade now, we have had successive Governments and political leaders whose decisions seem to be in their short term best political interest.
The proposed changes to superannuation announced on Tuesday evening’s Federal Budget are disappointing, at best.
They read more like a fearful political reaction to an Opposition that has been gaining traction in recent months. Labor have (largely) succeeded at painting a picture that the Government is allowing the wealthy to wrought superannuation at the expense of schools, hospitals and education etc.
And with a Federal election in less than two months, the Government is scared and this budget reflects what they are worried about a backlash from voters over.
Class warfare is alive and well in Australia and superannuation is caught in the crossfire.
The proposed changes will go part-way towards alleviating the problems with superannuation; i.e. problems as perceived by some. So as a short term political fix, these changes are probably good.
Actions and reactions
Superannuation is a vehicle designed to incentivise people to save for their retirement. Eroding such incentives, in the longer term, will result in even greater welfare dependency on future governments. Thus, as a policy to improve superannuation it fails, in my opinion.
Australia ‘suffers’ from an ageing population, and as more and more ‘baby boomers’ retire - moving from the group contributing to the budget bottom line (via their taxes), to the group taking from the budget bottom line (via welfare, health care and age care etc.), the negative impact of these proposed changes will be amplified.
As a side note
I understand that with the 24-hour media cycle it must be more difficult for politicians today to show the courage of their convictions and make the tough decisions that, may be politically unpopular but, in the nation’s best interest.
Campbell Newman was swept to power with the biggest majority of any government in Australian political history, in March 2011. Regardless of what you think of his policies, he stuck to his convictions and was successfully branded arrogant and out of touch. As such, his Government was decimated at the next election, with him personally losing his own seat.
Where are the courageous political leaders who know how to sell their message and take the public with them?
Be sure to join me and my panel of experts this coming Wednesday evening, 11th March for a MUST ATTEND webinar where you will find out exactly how the proposed budgetary changes; incl. superannuation, income tax and so on, will affect you now and in your retirement.
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